Throughout the last three months, 26 analysts have evaluated Costco Wholesale COST, offering a diverse set of opinions from bullish to bearish.
The table below provides a snapshot of their recent ratings, showcasing how sentiments have evolved over the past 30 days and comparing them to the preceding months.
| Bullish | Somewhat Bullish | Indifferent | Somewhat Bearish | Bearish | |
|---|---|---|---|---|---|
| Total Ratings | 5 | 13 | 8 | 0 | 0 |
| Last 30D | 0 | 1 | 0 | 0 | 0 |
| 1M Ago | 1 | 3 | 1 | 0 | 0 |
| 2M Ago | 0 | 2 | 0 | 0 | 0 |
| 3M Ago | 4 | 7 | 7 | 0 | 0 |
Analysts provide deeper insights through their assessments of 12-month price targets, revealing an average target of $1048.92, a high estimate of $1175.00, and a low estimate of $900.00. Marking an increase of 7.16%, the current average surpasses the previous average price target of $978.81.
Understanding Analyst Ratings: A Comprehensive Breakdown
A comprehensive examination of how financial experts perceive Costco Wholesale is derived from recent analyst actions. The following is a detailed summary of key analysts, their recent evaluations, and adjustments to ratings and price targets.
| Analyst | Analyst Firm | Action Taken | Rating | Current Price Target | Prior Price Target |
|---|---|---|---|---|---|
| Joseph Feldman | Telsey Advisory Group | Maintains | Outperform | $1100.00 | $1100.00 |
| Michael Baker | DA Davidson | Raises | Neutral | $1000.00 | $900.00 |
| Mark Astrachan | Stifel | Raises | Buy | $1075.00 | $1000.00 |
| Greg Melich | Evercore ISI Group | Raises | Outperform | $1070.00 | $1040.00 |
| Joseph Feldman | Telsey Advisory Group | Maintains | Outperform | $1100.00 | $1100.00 |
| Joseph Feldman | Telsey Advisory Group | Maintains | Outperform | $1100.00 | $1100.00 |
| Joseph Feldman | Telsey Advisory Group | Maintains | Outperform | $1100.00 | $1100.00 |
| Joseph Feldman | Telsey Advisory Group | Maintains | Outperform | $1100.00 | $1100.00 |
| Paul Lejuez | Citigroup | Raises | Neutral | $1060.00 | $800.00 |
| Edward Kelly | Wells Fargo | Raises | Equal-Weight | $1000.00 | $950.00 |
| Michael Baker | DA Davidson | Raises | Neutral | $900.00 | $880.00 |
| Simeon Gutman | Morgan Stanley | Raises | Overweight | $1150.00 | $950.00 |
| Oliver Chen | TD Cowen | Raises | Buy | $1090.00 | $975.00 |
| Scot Ciccarelli | Truist Securities | Raises | Hold | $935.00 | $909.00 |
| Karen Short | Barclays | Raises | Equal-Weight | $940.00 | $850.00 |
| Laura Champine | Loop Capital | Raises | Buy | $1095.00 | $1005.00 |
| Kelly Bania | BMO Capital | Raises | Outperform | $1175.00 | $1075.00 |
| Bill Kirk | Roth MKM | Raises | Neutral | $907.00 | $755.00 |
| Greg Melich | Evercore ISI Group | Raises | Outperform | $1030.00 | $1020.00 |
| Joseph Feldman | Telsey Advisory Group | Maintains | Outperform | $1050.00 | $1050.00 |
| Rupesh Parikh | Oppenheimer | Raises | Outperform | $1075.00 | $980.00 |
| Corey Tarlowe | Jefferies | Raises | Buy | $1145.00 | $1050.00 |
| Mark Astrachan | Stifel | Raises | Buy | $1000.00 | $935.00 |
| George Kelly | Wells Fargo | Raises | Equal-Weight | $950.00 | $850.00 |
| Peter Benedict | Baird | Raises | Outperform | $1075.00 | $975.00 |
| Joseph Feldman | Telsey Advisory Group | Raises | Outperform | $1050.00 | $1000.00 |
Key Insights:
- Action Taken: Analysts adapt their recommendations to changing market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their response to recent developments related to Costco Wholesale. This information provides a snapshot of how analysts perceive the current state of the company.
- Rating: Analysts assign qualitative assessments to stocks, ranging from 'Outperform' to 'Underperform'. These ratings convey the analysts' expectations for the relative performance of Costco Wholesale compared to the broader market.
- Price Targets: Understanding forecasts, analysts offer estimates for Costco Wholesale's future value. Examining the current and prior targets provides insight into analysts' changing expectations.
Analyzing these analyst evaluations alongside relevant financial metrics can provide a comprehensive view of Costco Wholesale's market position. Stay informed and make data-driven decisions with the assistance of our Ratings Table.
Stay up to date on Costco Wholesale analyst ratings.
All You Need to Know About Costco Wholesale
Costco operates a membership-based, no-frills retail model, predicated on offering a select product assortment in bulk quantities at bargain prices. The firm avoids maintaining costly product displays by keeping inventory on pallets and limits distribution expenses by storing its inventory at point of sale in the warehouse. Given Costco's frugal cost structure, the firm is able to price its merchandise below competing retailers, driving high sales volume per warehouse and allowing the retailer to generate strong profits on thin margins. Costco operates over 600 warehouses in the United States and boasts over 60% market share in the domestic warehouse club industry. Internationally, Costco operates another 280 warehouses, primarily in markets such as Canada, Mexico, Japan, and the UK.
Costco Wholesale: Delving into Financials
Market Capitalization: Exceeding industry standards, the company's market capitalization places it above industry average in size relative to peers. This emphasizes its significant scale and robust market position.
Revenue Growth: Over the 3 months period, Costco Wholesale showcased positive performance, achieving a revenue growth rate of 7.53% as of 30 November, 2024. This reflects a substantial increase in the company's top-line earnings. In comparison to its industry peers, the company stands out with a growth rate higher than the average among peers in the Consumer Staples sector.
Net Margin: The company's net margin is a standout performer, exceeding industry averages. With an impressive net margin of 2.89%, the company showcases strong profitability and effective cost control.
Return on Equity (ROE): Costco Wholesale's ROE excels beyond industry benchmarks, reaching 7.48%. This signifies robust financial management and efficient use of shareholder equity capital.
Return on Assets (ROA): Costco Wholesale's financial strength is reflected in its exceptional ROA, which exceeds industry averages. With a remarkable ROA of 2.51%, the company showcases efficient use of assets and strong financial health.
Debt Management: With a below-average debt-to-equity ratio of 0.33, Costco Wholesale adopts a prudent financial strategy, indicating a balanced approach to debt management.
How Are Analyst Ratings Determined?
Analyst ratings serve as essential indicators of stock performance, provided by experts in banking and financial systems. These specialists diligently analyze company financial statements, participate in conference calls, and engage with insiders to generate quarterly ratings for individual stocks.
In addition to their assessments, some analysts extend their insights by offering predictions for key metrics such as earnings, revenue, and growth estimates. This supplementary information provides further guidance for traders. It is crucial to recognize that, despite their specialization, analysts are human and can only provide forecasts based on their beliefs.
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This article was generated by Benzinga's automated content engine and reviewed by an editor.
© 2025 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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